Answer:
We need to use the compound interest formula where the future amount is determined by
A = P(1 + r/n)nt
A = future or present amount = 5,000,000
P = initial amount invested = 8,000
r = interest rate as a decimal (to be determined)
n = # times compounded in a year = 1
t = # years = 200
5000000 = 8000(1+r/1)1(200)= 8000(1+r)200
(1+r)200 = 5,000,000/8,000
(1+r)200 = 625
1+r = 200√625
1 + r = 6251/200
r = 6251/200 - 1 = 0.0327
r ≅ 3.27%
Step-by-step explanation:
